SMITH MIDLAND CORP
For the period ended Mar 31, 2025. Filed Jul 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Jul 10, 2025
SMID$26.11+3.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001654954-24-014461
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-07-10.
0001654954-25-007941
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 57 previous paragraphs and 58 current paragraphs.
19 unchanged; 34 reworded; 5 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Cost of sales as a percentage of revenue, not including royalties, decreased to 72% for the three months ended March 31, 2025 compared to 79% for the three months ended March 31, 2024. The decrease is mainly due to the increase in special project barrier rental revenue in the quarter, which have a higher margin and lower cost of sales as a percent of revenue when compared to product margins and product cost of sales as a percent of revenue.
Current report
Operating income was $4,387 for the three month period ended March 31, 2025, as compared to $1,509 for the three month period ended March 31, 2024. Operating expenses for the first quarter of 2025 were $2,588 compared to $2,402 for the first quarter of 2024. The increase is due to increased selling expenses as it relates to additional sales staff costs and commissions.
Current report
Architectural Panel Sales – The Company did not have Architectural panel projects during the first quarter of 2025. Architectural sales are expected to occur throughout 2025 as compared to the first quarter of 2025, although no assurance can be given.
Current report
Cost of Sales - Total cost of sales as a percent of revenue, excluding royalties, for the three months ended March 31, 2025, was 72%, as compared to 79% for the three months ended March 31, 2024. The decrease in cost of sales as a percentage of revenue, not including royalties, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, is primarily due to the increase in special project barrier rentals, which have a higher margin and lower cost of sales as a percent of revenue when compared to product margins and product cost of sales as a percent of revenue.
Current report
inventory, and equipment.
Removed paragraphs (4)
Previous report
Cost of sales as a percentage of revenue, not including royalties, decreased to 75% for the three months ended September 30, 2024 compared to 81% for the three months ended September 30, 2023. Cost of sales as a percentage of revenue, not including royalties, decreased to 77% for the nine months ended September 30, 2024 compared to 86% for the three months ended September 30, 2023. The decrease is primarily due to the increased production volumes which increased the absorption of overhead costs, as well as to a more favorable product mix.
Previous report
Operating income was $3,848 for the three month period ended September 30, 2024, as compared to operating income of $1,502 for the three month period ended September 30, 2023. Operating income was $8,031 for the nine month period ended September 30, 2024, as compared to operating income of $576 for the nine month period ended September 30, 2023. Operating expenses for the third quarter of 2024 were $2,730 compared to $2,075 for the third quarter of 2023. Operating expenses for the first nine months of 2024 were $7,593 compared to $6,953 for the first nine months of 2023.
Previous report
Architectural Panel Sales - Architectural panel sales increased for the three and nine months ended September 30, 2024, compared to the same period in 2023. The increase is related to production of two architectural projects that started production at the end of the first quarter of 2024. Architectural sales are expected to trend higher throughout 2024 as compared to the full year 2023, although no assurance can be given.
Previous report
Cost of Sales - Total cost of sales as a percent of revenue, excluding royalties, for the three months ended September 30, 2024, was 75%, as compared to 81% for the three months ended September 30, 2023. Total cost of sales as a percent of revenue, excluding royalties, for the nine months ended September 30, 2024, was 77%, as compared to 86% for the nine months ended September 30, 2023. The decrease in cost of sales as a percentage of revenue, not including royalties, for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, is due to the increase in overall production volumes, which increased the absorption of overhead costs. The Company also had multiple short-term special barrier rental projects occurring in the third quarter 2023, which historically carry slightly higher margins due to the nature of the projects. In addition, the decrease in cost of sales as a percentage of revenue, not including royalties, decreased due to production throughout the first half of 2024 related to contracts that factored in the rising inflationary costs experienced throughout 2022 and 2023, and a one-time expense related to panels the Company chose to remake for one specific customer related to defective steel from a supplier used in the initial product in 2023.
Reworded paragraphs (34)
Previous wording
Overall, the Company’s financial bottom line performance was higher for the first nine months of 2024 when compared to the first nine months of 2023. The Company had net income for the three and nine months ended September 30, 2024 of $3,150 and $6,278, respectively, compared to net income of $1,266 and $565 for the three and nine months ended September 30, 2023, respectively. Total revenue increased by $7,931 to $23,582 for the three months ended September 30, 2024 from $15,651 for the three months ended September 30, 2023. Total revenue increased by $16,786 to $59,977 for the nine months ended September 30, 2024 from $43,191 for the nine months ended September 30, 2023. The increase in revenue is mainly from an increase in architectural sales, utility sales, miscellaneous product sales, barrier rentals, and shipping and installation revenue. In particular, revenue and net income significantly increased in the more recent periods due to special barrier rental projects occurring in the third quarter of 2024.
Current wording
Overall, the Company’s financial bottom line performance was higher for the first quarter of 2025 when compared to the first quarter of 2024. The Company had net income for the three months ended March 31, 2025 of $3,327 compared to net income of $1,147 for the three months ended March 31, 2024. Total revenue increased by $5,942 to $22,698 for the three months ended March 31, 2025 from $16,756 for the three months ended March 31, 2024. The increase in revenue is mainly from an increase in barrier rental, soundwall sales and Easi-Set and Easi-Span building sales. The significant increase in barrier rental was due to a special project undertaken and performed in the first quarter of 2025.
Previous wording
Income tax expense for the three month period ended September 30, 2024 was $694, or an effective tax rate of 18%, as compared to income tax expense of $247, or an effective tax rate of 16% for the three month period ended September 30, 2023. Income tax expense for the nine month period ended September 30, 2024 was $1,683, or an effective tax rate of 21%, as compared to income tax expense of $160, or an effective tax rate of 22% for the nine month period ended September 30, 2023.
Current wording
Income tax expense for the three month period ended March 31, 2025 was $1,020, or an effective tax rate of 24%, as compared to $357, or an effective tax rate of 24% for the three month period ended March 31, 2024.
Previous wording
As of November 1, 2024, the Company’s sales backlog was approximately $62.8 million, as compared to approximately $60.2 million around the same time in the prior year. It is estimated that most of the projects in the current sales backlog will be produced within 12 months, but a few will be produced over multiple years. The Company anticipates funding related to the Infrastructure Investment and Jobs Act to begin coming through the state and local governments for the remainder of 2024 and beyond to further promote growth in the revenue related to the highway, transportation, and infrastructure markets, although no assurance can be provided. The Company continues to increase marketing and sales efforts towards SlenderWall sales and barrier rentals, in line with long-term strategic objectives.
Current wording
As of May 7, 2025, the Company’s sales backlog was approximately $52.4 million, as compared to approximately $64.6 million around the same time in the prior year. It is estimated that most of the projects in the current sales backlog will be produced within 12 months, but a few will be produced over multiple years. The Company anticipates funding related to the Infrastructure Investment and Jobs Act to come through the state and local governments in 2025 and beyond to further promote growth in the revenue related to the highway, transportation, and infrastructure markets, although no assurance can be provided. The Company continues to increase marketing and sales efforts towards SlenderWall sales and barrier rentals, in line with long-term strategic objectives.
Previous wording
Three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023
Current wording
Three months ended March 31, 2025, compared to the three months ended March 31, 2024 ** **
Previous wording
Revenue includes product sales, barrier rentals, royalty income, and shipping and installation revenues. Product sales are further divided into soundwall, architectural and SlenderWall™ panels, miscellaneous wall panels, highway barrier, Easi-Set® buildings, utility products, and miscellaneous precast products. The following table summarizes the sales by product type and comparison for the three and nine month periods ended September 30, 2024 and 2023.
Current wording
Revenue includes product sales, barrier rentals, royalty income, and shipping and installation revenues. Product sales are further divided into soundwall, architectural and SlenderWall™ panels, miscellaneous wall panels, highway barrier, Easi-Set® buildings, utility products, and miscellaneous precast products. The following table summarizes the sales by product type and comparison for the three month period ended March 31, 2025 and 2024.
Previous wording
Soundwall Sales - Soundwall sales were lower for the three month period ended September 30, 2024, compared to the same period in 2023. The decrease is due to lower production at the North Carolina and South Carolina plants reflecting less soundwall projects than in the prior year period. Soundwall sales were significantly higher for the nine month period ended September 30, 2024, compared to the same period in 2023. The increase is due to higher production volumes at all three plants, as the Company increased production output to execute and deliver on the Company’s increased backlog. Soundwall sales are expected to trend similarly throughout the remainder 2024 as compared to the first three quarters of 2024, although no assurance can be given.
Current wording
Soundwall Sales - Soundwall sales were higher for the three month period ended March 31, 2025, compared to the same period in 2024. The increase is due to higher production volumes at all three plants, as the Company begins increasing production output to execute and deliver on the Company’s increased Soundwall backlog. Soundwall sales are expected to trend similarly throughout the remainder 2025 as compared to the first quarter of 2025, although no assurance can be given.
Previous wording
SlenderWall Sales - SlenderWall sales decreased for the three and nine months ended September 30, 2024, as compared to the same periods in 2023. A SlenderWall project was in production during the first half of 2023 and the Company did not have a SlenderWall project in production during the first nine months of 2024. The Company continues to focus sales initiatives on SlenderWall, but no assurance can be given as to the success of this endeavor.
Current wording
SlenderWall Sales – The Company did not have SlenderWall projects in production during the first quarters of 2025 and 2024. The Company continues to focus sales initiatives on SlenderWall, but no assurance can be given as to the success of this endeavor. SlenderWall sales are expected to increase in 2025 compared to 2024, as several SlenderWall projects are anticipated to start production in the second half of 2025.
Previous wording
Miscellaneous Wall Sales - Miscellaneous wall sales decreased for the three and nine month periods ended September 30, 2024 compared to the same periods in 2023. Miscellaneous wall sales were slightly down due to lower production volumes in the second and third quarters of 2024 as compared to 2023. Miscellaneous wall sales are expected to trend similarly throughout 2024 as the first three quarters of 2024, although no assurance can be provided.
Current wording
Miscellaneous Wall Sales - Miscellaneous wall sales decreased for the three month period ended March 31, 2025, compared to the same period in 2024. Based on the Company’s backlog for these products, miscellaneous wall sales are expected to trend higher throughout 2025 as compared to the first quarter of 2025, although no assurance can be provided.
Previous wording
Barrier Sales - Barrier sales decreased for the three and nine month periods ended September 30, 2024, compared to the same periods in 2023. The decrease is due to the completion of large barrier projects in North Carolina and South Carolina during 2023. Barrier sales are expected to trend similarly for the last quarter of 2024 as compared to the first the quarters of 2024, although no assurance can be given. The Company continues to shift marketing efforts from barrier sales to barrier rentals in the Delaware to Virginia region.
Current wording
Barrier Sales - Barrier sales decreased for the three month period ended March 31, 2025, compared to the same period in 2024. Barrier sales are expected to trend similarly throughout 2025 as compared to the first quarter of 2025, although no assurance can be given. The Company continues to shift marketing efforts from barrier sales to barrier rentals in the Delaware to Virginia region.
Previous wording
Easi-Set® and Easi-Span Building Sales - Building and restroom sales increased slightly for the three and nine month periods ended September 30, 2024, compared to the same periods in 2023, due to increased building sales at all manufacturing plants. Building and restroom sales are expected to continue to trend similarly throughout the remainder of 2024 compared to the first nine months of 2024.
Current wording
Easi-Set® and Easi-Span Building Sales - Building and restroom sales increased significantly for the three month period ended March 31, 2025, compared to the same period in 2024, due to increased building sales at all manufacturing plants. Building and restroom sales are expected to continue to trend similarly throughout the remainder of 2025 compared to the first quarter of 2025 due to increased demand from sales and marketing, although no assurances can be given.
Previous wording
Utility Sales - Utility sales increased significantly for the three and nine month periods ended September 30, 2024, compared to the same periods in 2023. The Company has seen a surge in demand for utility vaults in the Northern Virginia market to support data center growth in this market. Utility sales are expected to trend similarly for the remainder of 2024 as compared to the first nine months of 2024, although no assurance can be provided.
Current wording
Utility Sales - Utility sales decreased for the three month period ended March 31, 2025, compared to the same period in 2024, reflecting general product sales fluctuations. The Company has seen a surge in demand for utility vaults in the Northern Virginia market to support data center growth. Utility sales are expected to trend higher for the remainder of 2025 as compared to the first quarter of 2025, although no assurance can be provided.
Previous wording
Miscellaneous Product Sales - Miscellaneous products are products that are produced or sold that do not meet the criteria defined for other revenue categories. Examples would include precast concrete slabs, concrete blocks, or small add-on items. Miscellaneous product sales increased for the three and nine month periods ended September 30, 2024, compared to the same periods in 2023. The increase is mainly from the Virginia plant that started production on one large project for the production of precast beams and platforms. Miscellaneous product sales are expected to trend lower for the fourth quarter of 2024 as compared to the first three quarters of 2024, although no assurance can be given.
Current wording
Miscellaneous Product Sales - Miscellaneous products are products that are produced or sold that do not meet the criteria defined for other revenue categories. Examples would include precast concrete slabs, concrete blocks, or small add-on items. Miscellaneous product sales decreased for the three month period ended March 31, 2025, compared to the same period in 2024. The decrease is mainly from the Virginia plant that started production on one large project for the production of precast beams and platforms in the first quarter of 2024 which was not a factor in the first quarter of 2025. Miscellaneous product sales are expected to trend higher throughout 2025 as compared to the first quarter of 2025, although no assurance can be provided.
Previous wording
Barrier Rentals – Barrier rentals increased significantly for the three and nine month periods ended September 30, 2024 compared to the same periods in 2023. This increase is attributed to an increase in utilization of rental barrier and the close-out of the buy-back agreement. Barrier rental revenue also increased due to multiple special barrier projects occurring and completed during the third quarter 2024. Barrier rental revenue, excluding revenue from special barrier projects, is expected to trend higher throughout 2024 as compared to the first three quarters of 2024, although no assurance can be given. Revenues from special barrier projects, if any, are expected to decrease due to the completion of projects in the third quarter of 2024.
Current wording
Barrier Rentals – Barrier rentals increased significantly for the three month period ended March 31, 2025 compared to the same period in 2024. This increase is mainly attributed to a large special barrier project undertaken and performed in the first quarter of 2025. Barrier rental revenue, excluding revenue from special barrier projects, is expected to trend higher throughout 2025 as compared to barrier rental revenue, excluding revenue from special barrier projects, in the first quarter of 2025, although no assurance can be given. Subsequent to the first quarter of 2025, the company has undertaken and performed a large special project in the second quarter of 2025.
Previous wording
Royalty Income – Royalties increased for the three and nine month periods ended September 30, 2024, compared to the same periods in 2023. The increase is related to higher barrier production volumes experienced by the Company’s licensees. It is expected that infrastructure spending and the start of production by licensees of a new, low profile barrier that utilizes the J-J Hook system, will continue to drive royalties. The Company expects royalties for 2024 to exceed royalty income for the full year 2023, although no assurance can be given.
Current wording
Royalty Income – Royalties increased for the three month period ended March 31, 2025, compared to the same period in 2024. The increase is related to higher barrier production volumes experienced by the Company’s licensees. It is expected that infrastructure spending and the start of production by licensees of a new, low profile barrier that utilizes the J-J Hook system, will continue to drive royalties. The Company expects royalties for 2025 to exceed royalty income for the full year 2024, although no assurance can be given.
Previous wording
Shipping and Installation – Shipping revenue results from shipping our products to the customers' final destination and is recognized when the shipping services take place. Installation activities include installation of our products at the customers’ construction site. Installation revenue results when attaching architectural wall panels to a building, installing an Easi-Set® or Easi-Span building at a customers' site, setting highway barrier, or setting any of our other precast products at a site specific to the requirements of the owner. Shipping and installation revenues increased for the three and nine month periods ended September 30, 2024 compared to the same periods in 2023. The increase is mainly attributed to the increase in shipping and installation of SlenderWall and architectural panels. This increase in shipping and installation revenue correlates with the increased production of SlenderWall panels that occurred, and for which revenue was previously recognized, throughout 2023.
Current wording
Shipping and Installation – Shipping revenue results from shipping our products to the customers' final destination and is recognized when the shipping services take place. Installation activities include installation of our products at the customers’ construction site. Installation revenue results when attaching architectural wall panels to a building, installing an Easi-Set® or Easi-Span building at a customers' site, setting highway barrier, or setting any of our other precast products at a site specific to the requirements of the owner. Shipping and installation revenues slightly decreased for the three month period ended March 31, 2025 compared to the same period in 2024. The decrease is mainly attributed to the decrease in shipping and installation of SlenderWall, architectural panels and other products which are expected to trend higher in 2025, which are directly correlated to shipping and installation revenue.
Previous wording
General and Administrative Expenses - For the three months ended September 30, 2024, the Company's general and administrative expenses increased to $1,720 from $1,187 during the same period in 2023. For the nine months ended September 30, 2024, the Company's general and administrative expenses increased to $4,938 from $4,420 during the same period in 2023. General and administrative expense as a percentage of total revenue was 7% and 8% for the three month periods ended September 30, 2024 and 2023, respectively. General and administrative expense as a percentage of total revenue was 8% and 10% for the nine month periods ended September 30, 2024 and 2023, respectively. Such expenses increased due to higher salary and wage rates, and the increase in the allowance for credit losses.
Current wording
General and Administrative Expenses - For the three months ended March 31, 2025, the Company's general and administrative expenses increased by $35 to $1,584 from $1,549 during the same period in 2024. This represents a nominal increase of 2% and is attributable to inflationary factors across multiple general and administrative expense categories. General and administrative expense as a percentage of total revenue was 7% and 9% for the three month periods ended March 31, 2025 and 2024, respectively.
Previous wording
Selling Expenses* -* Selling expenses for the three months ended September 30, 2024 increased to $1,010 from $888 for the same period in 2023. The slight increase is due to additional salaries and wages during in 2024. Selling expenses for the nine months ended September 30, 2024 and 2023 were $2,655 and $2,533, respectively. The Company expects selling expenses to increase in future periods with the plan for additional sales associates and increased advertising spending aligning with the strategy to increase SlenderWall sales and barrier rentals.
Current wording
Selling Expenses* -* Selling expenses for the three months ended March 31, 2025 increased to $1,003 from $853 for the same period in 2024. The increase in selling expenses for the three month period ended March 31, 2025, compared to the same period in 2024, is due to increased general selling cost and commissions. The Company expects selling expenses to increase in future periods with the plan for additional sales associates and increased advertising spending aligning with the strategy to increase SlenderWall sales and barrier rentals.
Previous wording
Operating Income (Loss) - The Company had operating income for the three month period ended September 30, 2024 of $3,848 compared to operating income of $1,502 for the same period in 2023. The Company had operating income for the nine month period ended September 30, 2024 of $8,031 compared to operating income of $576 for the same period in 2023. The increase is mainly due to the increase in revenue and decrease in cost of sales as a percent of revenue.
Current wording
Operating Income (Loss) - The Company had operating income for the three month period ended March 31, 2025 of $4,387 compared to $1,509 for the same period in 2024. The increase is mainly due to the increase in revenue and decrease in cost of sales as a percent of revenue.
Previous wording
Interest Expense - Interest expense was $56 and $64 for the three month periods ended September 30, 2024 and 2023, respectively. Interest expense was $175 and $192 for the nine month periods ended September 30, 2024 and 2023, respectively. The Company expects interest expense for the full year of 2024 to be lower compared to the full year of 2023 due to the decrease in level of indebtedness.
Current wording
Interest Expense - Interest expense was $55 and $60 for the three month periods ended March 31, 2025 and 2024, respectively. The Company expects interest expense for the full year of 2025 to be lower compared to the full year of 2024 due to the decrease in level of indebtedness on all notes which are fixed interest rates.
Previous wording
Income Tax Expense (Benefit) - The Company had an income tax expense of $694, or an effective tax rate of 18%, for the three months ended September 30, 2024, compared to income tax expense of $247, or an effective tax rate of 16% for the same period in 2023. The Company had an income tax expense of $1,683, or an effective tax rate of 21%, for the nine months ended September 30, 2024, compared to income tax expense of $160, or an effective tax rate of 22% for the same period in 2023.
Current wording
Income Tax Expense (Benefit) - The Company had an income tax expense of $1,020, or an effective tax rate of 24%, for the three months ended March 31, 2025, compared to income tax expense of $357, or an effective tax rate of 24% for the same period in 2024.
Previous wording
Net Income (Loss) - The Company had net income of $3,150 and $6,278 for the three and nine months ended September 30, 2024, respectively, compared to net income of $1,266 and $565 for the same periods in 2023, respectively. The basic and diluted earnings per share was $0.59 and $1.18, respectively, for the three and nine months ended September 30, 2024, and the basic and diluted earnings per share was $0.24 and $0.11 for the three and nine months ended September 30, 2023, respectively.
Current wording
Net Income (Loss) - The Company had net income of $3,327 for the three months ended March 31, 2025, compared to net income of $1,147 for the same period in 2024. The basic and diluted earnings per share was $0.63 and $0.62, respectively for the three months ended March 31, 2025, and the basic and diluted earnings per share was $0.22 and $0.21 for the three months ended March 31, 2024.
Previous wording
The Company has a mortgage note payable to Burke & Herbert Bank & Trust Company, formally Summit Community Bank (the “Bank”) for the construction of the North Carolina facility. The note carries a ten-year term at a fixed interest rate of 3.64% annually per the Promissory Note Rate Conversion Agreement, with monthly payments of $22, and is secured by all of the assets of Smith-Carolina and a guarantee by the Company. The balance of the note payable at September 30, 2024 was $1,221. The balance of the note payable at December 31, 2023 was $1,382.
Current wording
The Company has a mortgage note payable to Burke & Herbert Bank & Trust Company, formerly Summit Community Bank (the “Bank”) for the construction of its North Carolina facility. The note carries a ten-year term at a fixed interest rate of 3.64% annually per the Promissory Note Rate Conversion Agreement, with monthly payments of $22, and is secured by all of the assets of Smith-Carolina and a guarantee by the Company. The balance of the note payable at March 31, 2025 and December 31, 2024 was $1,122 and $1,166 respectively.
Previous wording
The Company also has a note payable to the Bank in the amount of $1,624 as of September 30, 2024 and $1,792 as of December 31, 2023. The loan is collateralized by a first lien position on the Midland, VA plant, building, and assets. The interest rate per the Promissory Note is fixed at 3.99% per annum, with principal and interest payments payable monthly over 120 months in the amount of $27. The loan matures on March 27, 2030.
Current wording
The Company also has a note payable to the Bank in the amount of $1,489 and $1,536 as of March 31, 2025 and December 31, 2024 respectively. The loan is collateralized by a first lien position on the Midland, VA plant, building, and assets. The interest rate per the Promissory Note is fixed at 3.99% per annum, with principal and interest payments payable monthly in the amount of $27. The loan matures on March 27, 2030.
Previous wording
On February 10, 2022, the Company completed the financing for its acquisition of certain real property in Midland, VA from the fourth quarter of 2021, totaling approximately 29.8 acres, with a note payable to the Bank in the original principal amount of $2,805. The loan is collateralized by a first lien position on the related real property. The interest rate is fixed at 4.09% per annum, with principal and interest payments payable monthly over 180 months for $21. The loan matures on February 10, 2037. The balance of the note payable on September 30, 2024 was $2,420. The balance of the note payable at December 31, 2023 was $2,525.
Current wording
On February 10, 2022, the Company completed the financing for its acquisition of certain real property in Midland, VA from the fourth quarter of 2021, totaling approximately 29.8 acres, with a note payable to the Bank. The loan is collateralized by a first lien position on the related real property. The interest rate is fixed at 4.09% per annum, with principal and interest payments payable monthly over 180 months for $21. The loan matures on February 10, 2037. The balance of the note payable on March 31, 2025 and December 31, 2024 was $2,361 and $2,379 respectively.
Previous wording
The Company additionally has one smaller installment loan with an annual interest rate of 2.90%, maturing in 2025, with a balance of $16 as of September 30, 2024. The balance at December 31, 2023 was $29.
Current wording
The Company additionally has one smaller installment loan with an annual interest rates of 2.90% maturing in 2025, with a balance at March 31, 2025 and December 31, 2024 totaling $10 and $13 respectively.
Previous wording
Under the loan covenants with the Bank, the Company is limited to annual capital expenditures of $5,000 and has received a waiver for 2024 from the Bank. Also under the loan covenants with the Bank, the Company must maintain tangible net worth of $10,000. The Company is in compliance with all covenants pursuant to the loan agreements as of September 30, 2024.
Current wording
Under the loan covenants with the Bank, the Company is limited to annual capital expenditures of $5,000 and must maintain tangible net worth of $25,000. The Company has received waivers from the Bank pursuant to the loan agreements as of March 31, 2025 and December 31, 2024.
Previous wording
In addition to the notes payable discussed above, the Company has a $5,000 line of credit with the Bank with no balance outstanding as of September 30, 2024. The line of credit is evidenced by a commercial revolving promissory note, which carries a variable interest rate of prime, with a floor of 3.50%. The line of credit was scheduled to mature on October 1, 2024, but was extended to January 1, 2025. The loan is collateralized by a first lien position on the Company's accounts receivable and inventory and a second lien position on all other business assets. Key provisions of the line of credit required the Company (i) to obtain bank approval for capital expenditures in excess of $5,000 during the term of the loan and (ii) to obtain bank approval prior to its funding of any acquisition. On October 1, 2023, the Company received a Commitment Letter from the Bank to provide a guidance line of credit specifically to purchase business equipment in an amount up to $1,500. The commitment provided for the purchase of equipment for which a note payable will be executed with a term not to exceed five years with an interest rate at the Wall Street Journal prime rate plus 0.50% with a floor of 3.50% per annum. The loan is collateralized by a first lien position on all equipment purchased under the line. The commitment for the guidance line of credit matured on October 1, 2024. As of September 30, 2024, the Company had not purchased any equipment pursuant to the $1,500 commitment.
Current wording
In addition to the notes payable discussed above, the Company has a revolving line of credit evidenced by promissory note with the Bank, with the available amount of $5,000 with no balance outstanding as of Marh 31, 2025 and December 31, 2024. The line of credit is evidenced by a commercial revolving promissory note, which carries a variable interest rate of prime, with a floor of 4.99%. The line of credit was renewed on January 1, 2025 and matures January 1, 2026. The amount available is based on the lower of the maximum $5,000 or 50% of eligible cash, inventory, and accounts receivable balances at the financial statement date. Key provisions of the line of credit require the Company (i) to obtain bank approval for capital expenditures in excess of $5,000 during the term of the loan and (ii) to obtain bank approval prior to its funding of any acquisition. The line of credit is collateralized by a first lien position on the Company's accounts receivable,
Previous wording
On September 30, 2024, the Company had cash totaling $9,013 compared to cash totaling $9,175 on December 31, 2023. The decrease in cash is primarily the result of cash absorbed by investing activities through capital spending as described in further detail below. The Company expects its cash position to be favorably affected to the extent that it is successful in collecting outstanding accounts receivable balances.
Current wording
On March 31, 2025, the Company had cash totaling $9,006 compared to cash totaling $7,548 on December 31, 2024. The increase in cash is primarily the result of cash provided by operating activities including special project barrier income. The Company expects its cash position to be favorably affected to the extent that it is successful in collecting outstanding accounts receivable balances.
Previous wording
The Company’s accounts receivable balances, net of allowance, at September 30, 2024 was $17,822, compared to $17,209 at December 31, 2023.
Current wording
The Company’s accounts receivable balances, net of allowance, at March 31, 2025 was $22,879, compared to $19,420 at December 31, 2024. The increase is primarily the result of increased sales volumes.
Previous wording
Capital spending for the nine months ended September 30, 2024 totaled $5,543 as compared to $4,131 for the same period in 2023. The 2024 expenditures were primarily for a new batch plant system for the South Carolina manufacturing facility, utility vault forms for increased production capacity, and crash cushions to expand the Company’s rental product offering. The Company intends to invest approximately $6,000 for the full year 2024, which includes expansion of the North Carolina manufacturing facility, soundwall forms for increased production capacity, and miscellaneous manufacturing equipment. Anticipated capital expenditures excludes possible acquisitions.
Current wording
Capital spending for the three months ended March 31, 2025 totaled $595 as compared to $1,795 for the same period in 2024. The 2025 expenditures were primarily for investment in the ramp up in barrier production. The 2024 expenditures were primarily related to expenditures for the expansion of the North Carolina production facility and new manufacturing equipment. The Company intends to invest approximately $5,000, for the full year 2025, which includes expansion of the Virginia and North Carolina manufacturing facilities, soundwall forms for increased production capacity, and miscellaneous manufacturing equipment. Anticipated capital expenditures excludes possible acquisitions.
Previous wording
The Company’s cash flow from operations is affected by production schedules set by contractors, which generally provide for payment 30 to 90 days after the products are produced, and with some architectural contracts, retainage may be held until the entire project is completed. This payment schedule may result in liquidity challenges for the Company because it must bear a portion of the cost of production before it receives payment from its customers. The Company’s average days sales outstanding (DSO), excluding the effect of unbilled revenue, was 85 days for the nine months ended September 30, 2024, compared to 116 days for the nine months ended September 30, 2023.
Current wording
The Company’s cash flow from operations is affected by production schedules set by contractors, which generally provide for payment 30 to 90 days after the products are produced, and with some architectural contracts, retainage may be held until the entire project is completed. This payment schedule may result in liquidity challenges for the Company because it must bear a portion of the cost of production before it receives payment from its customers. The Company’s average days sales outstanding (DSO), excluding the effect of unbilled revenue, was 87 days for the three months ended March 31, 2025, compared to 109 days for the three months ended March 31, 2024.
Previous wording
The Company’s inventory was $6,242 on September 30, 2024, and $5,150 on December 31, 2023, or an increase of $1,092. The increase in inventory is mainly due to the increase of finished goods inventory compared to the prior year. The increase is related to inventory needed on-hand for the anticipated delivery schedules as it relates to utility vaults in 2024. Inventory turnover was 9.7, annualized for the nine months ended September 30, 2024, compared to 15.3, annualized for the same period in 2023.
Current wording
The Company’s inventory was $5,210 on March 31, 2025, and $4,599 on December 31, 2024, or an increase of $610. The increase in inventory is mainly due to the increase of finished goods inventory compared to the prior year. The increase is related to inventory needed on-hand for backlog production and anticipated barrier rentals. Inventory turnover was 7.5, annualized for the three months ended March 31, 2025, compared to 9.7, annualized for the same period in 2024.
Previous wording
Raw material costs used in production have slightly increased for the first nine months of 2024. The Company anticipates raw material prices to slightly increase for the remainder of 2024, although no assurance can be given regarding future pricing.
Current wording
Raw material costs used in production have slightly increased for the first three months of 2025. The Company anticipates raw material prices to slightly increase for the remainder of 2025, although no assurance can be given regarding future pricing.
Previous wording
As of November 1, 2024, the Company’s sales backlog was approximately $62.8 million, as compared to approximately $60.2 million at the same time in 2023. It is estimated that the majority of the projects in the sales backlog will be produced within 12 months, with a portion extending several years.
Current wording
As of May 7, 2025, the Company’s sales backlog was approximately $52.4 million, as compared to approximately $64.6 million at the same time in 2024. It is estimated that the majority of the projects in the sales backlog will be produced within 12 months, with a portion extending several years.